Self-Emplyoed Dancer, Working on a cruise seeking help!

TimeToDance

Hi, I’m sorry to sound so clueless in the following message, but I really am and I would love it if someone wouldn’t mind giving me a bit of help. I’ve been a dancer on a cruise since last August and my contact finishes this month. I got it straight after graduating from college and didn’t have much time to sort anything out before I was away. Anyway I’ve recently found out that I need to back date myself as self-employed and because my contract is seamen’s and I get taxed I should get that money back as you shouldn’t get taxed. So apparently I should get a nice amount of money back . I’ve also kept receipts for many things I’ve brought so I can get the tax back on them too, they’re mainly in Euros so do I just convert the prices to Pounds?

Many Thanks for the help, it’s very appreciated and going to help me out a lot!
Joel

glider3560

You are supposed to register as self-employed within 3 months of becoming self-employed. However, if you've been taxed on PAYE, then it is likely you are an employee, not self-employed.

What I think you really meant was self-assessment. See this page: http://www.hmrc.gov.uk/cnr/seafaq1.htm

chrismac1

For HMRC details on the seafarer tax scheme see:

http://www.hmrc.gov.uk/cnr/seafarerstax.htm

You should register as self-employed. All costs in foreign currency should be converted into pounds - strictly at the rate on the date of the purchase, but there are monthly rates on the HMRC site which you could also use.

jimmo

I don't get this!
I have never dealt with seafarers' tax affairs so could be way off the mark.
You say your are a self-employed dancer but you also say that tax is deducted from your earnings because you are a seafarer. That's what doesn't make sense. Apart from sub-contractors in the construction industry, UK residents who are self-employed do not get tax deducted from their takings.
Also, if I remember correctly, anybody who works on a ship at sea is subject to the direction and control of the captain and that alone is sufficient to make them employees, certainly for tax purposes.
Therefore it would seem very unwise for you to register (late) as self-employed with HMRC, at least until you know a bit more about tax matters. You may need to register for Self Assessment but that is a different thing to self-employment
Just to emphasise my point, the legislation on the Seafarers'' Earnings Deduction is contained within the Income Tax (Earnings and Pensions) Act 2003 and so it applies to employees and not to the self-employed.
Also, the HMRC Staff manuals deal with this in the Employment Income Manual (EIM)
Take a look at this link.
http://www.hmrc.gov.uk/manuals/eimanual/EIM33001.htm
Therefore if you are self-employed you have no chance of claiming the Seafarers' Earnings Deduction
As this appears to be your first foray into the taxman's world it is probably best to get the basics clear in your mind before moving on.
How much did you earn from 6 April 2010 to 5 April 2011?
How much tax was deducted?
Was national Insurance also deducted?
If your total income was less than £6,475 you are almost certainly entitled to claim a complete refund without worrying about the finer details concerning seafarers.
What evidence have you got showing how much tax you have paid and have you received a form P60 for the year ended 5 April 2011 from whoever pays you?

tiggerjj

If you need more advise about sea farers tax either call up the cardiff tax office and ask for the seafarers section.
Alternatively seatax is an accounting company that can fill in your claim for you and they are very clued up. I personally havent used them but I have colleagues (also seafarers like me) who have, and were happy
Also HMRC website has pretty comphensive information about seafarers tax deduction.